Canada Chrome Corporation (“CCC”) is a wholly owned subsidiary of KWG Resources Inc. and has staked mining claims linking the Black Horse and Big Daddy chromite deposits to road and rail infrastructure 328 km to the south. The claims on the northern half cover the only ridge of high ground where road and rail is constructible.
CCC engaged Golder Associates to conduct a geotechnical sampling program on the 328 kilometer railway corridor. Soil profile samples were taken from 811 hollow stem boreholes at regular intervals. The data generated by the Golder program will be incorporated into the railroad engineering model, for completion of a pre-feasibility study by Krech Ojard & Associates, the railroad engineering firm engaged by KWG.
CCC has released a study that it commissioned by the international engineering firm Tetra Tech WEI Inc. to compare the capital and operating costs of both a railroad and an all-weather road to the Ring of Fire. The study estimates the capital costs for a roadway at $1.052 billion and a railroad at $1.561 billion. If 3 million tonnes per year are shipped, operating costs are estimated at $10.50 per tonne for the railroad and $60.78 per tonne for trucking on the road. If 5 million tonnes per year are shipped, it is estimated that those operating costs per tonne would be reduced to $6.33 for rail and $59.28 for trucking.